A project based in Slovenia has developed a cryptocurrency invoice financing platform dedicated to providing new liquidity for SMEs.
The Hive Project uses the blockchain to allow SMEs to turn their accounts receivable into tradable assets without the need for centralized intermediaries. It uses Ethereum’s distributed ledger and smart contract technology to issue a unique fingerprint to each issued invoice by tokenizing invoices and publishing them on the blockchain.
“This innovation enables businesses to automate their invoicing process, bringing blockchain technology closer to commercialization,” Hive said in a release.
Hive’s ultimate goal is to provide a full marketplace with advanced trading analytics in support of peer-to-peer lending. That will further increase available liquidity and create a central database of invoices which can be scored and audited. It also helps simplify credit checks and facilitate real-time audits.
“We want to help small businesses solve their liquidity issues by leveraging blockchain technology to provide financing options previously only available to large companies,” Hive Project cofounder and CEO Jure Soklic said. “Our platform will dramatically streamline invoice issuance and settlement processes, optimizing small and medium-enterprises’ ability to access liquidity for day-to-day operations and to finance expansion.”
A Hive token (HVN) allows the holder to purchase invoices on Hive and get credit scores for companies with an established financial track record on the Hive blockchain. Invoices are uploaded to the Ethereum blockchain by invoice sellers in search of liquidity.
“Hive Project’s end state, a marketplace with advanced trading analytics for peer-to-peer lending, will rapidly increase the liquidity available to small businesses and expand today’s often mercenary ecosystem of factoring and lending,” said Richard Titus, Advisor to Hive Project, Former SVP Samsung Electronics Visual Display, and CEO of Prompt.ly.
Hive’s token crowdsale begins Mon., July 3 and runs for six weeks with the goal being to raise 2,000 BTC in capital. The funds will be used to develop technical infrastructure and create the Hive Invoice Financing Fund.
Learn more by reading the Hive Project whitepaper.